Baltimore Bancorp loses $6.5 million

January 24, 1991

Baltimore Bancorp, the parent company of the Bank of Baltimore, reports a fourth-quarter loss of $6.5 million, or 51 cents a share, compared with earnings of $1.9 million during the 1989 fourth quarter.

But the company reports it ended the year in the black with a net income of $9 million, or 71 cents a share, a 49 percent drop from 1989 when the company earned $17.6 million, or $1.36 per share.

Baltimore Bancorp, the state's fifth-largest banking operation, had total assets of $3.52 billion at the end of the year.

The company said the fourth-quarter loss was due to a larger than normal addition to loan-loss reserves of $18.9 million compared with an addition of $3.8 million in the 1989 fourth quarter. The money was added "due to continuing concern over the economy and particularly the real estate market in this area," according to a press release.

"Safety and soundness continue as the company's primary consideration," said Harry L. Robinson, chairman of the board and chief executive officer. "Since our founding in 1818, we have been a very conservative institution and we intend to vigorously adhere to those principles. It is our plan to stay ahead of any problems that may develop."

The year-end loan loss reserves stood at $35.5 million, or 1.59 percent of total loans. The addition to the reserves was made after regulators from the state and the Federal Deposit Insurance Corp. examined the bank in December.

Bank of Baltimore, which has 51 branches in Maryland, ended the year with deposits of $2.91 billion, a 9.3 percent increase over the previous year.

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